How Much Income Do You Need to Buy a House?

Here's How Much You Should Be Earning to Buy a Home

One of the main things that stops people from owning a home is affordability, according to a Gallup poll. But perhaps you feel financially ready now and that you're in a good position to buy a home. Let's see if that's true.

HSH, a mortgage resource website, recently churned out some estimates of how much you should be earning in order to buy a median-priced home in 25 cities. The calculations were based on how much the monthly principal and interest payments will cost with the standard 20 percent down payment and 28 percent "front-end" debt ratios:

San Francisco: $115,510

San Diego: $81,570

Los Angeles: $72,127

New York City: $66,167

Boston: $63,673

Washington DC: $62,810

Seattle: $59,130

Denver: $48,123

Portland: $45,873

Miami: $43,919

Sacramento: $42,832

Baltimore: $41,155

Philadelphia: $36,836

Minneapolis: $33,800

Phoenix: $32,812

Chicago: $32,389

Houston: $31,299

Dallas: $29,751

San Antonio: $29,305

Orlando: $28,298

Tampa: $24,651

Atlanta: $24,391

St. Louis: $22,398

Cincinnati: $22,227

Cleveland: $19,435

Don't be discouraged if your salary is far from what's listed. Renting isn't always a bad option; in fact, it's an even better one for certain people. You can invest the money you would've spent on miscellaneous homeownership costs, such as maintenance or property tax, for a potentially great return.